Why Is External Audit Important In An Organisation?

Why Is External Audit Important In An Organisation?

Getting audited is essentially receiving a written letter (audit report) that tells you if your company has been in compliance with the financial regulations. And for companies in Singapore that do not meet the eligibility criteria of a small company, you must appoint an auditor to have your company’s annual financial statements audited annually.

What is an audit report

The audit report will determine if your company’s financial activities comply with the Financial Reporting Standards of Singapore. But preparing and handing over these financial statements can be a tedious process. As such, many businesses have opted for external auditing services to ease their load.

Why you should seek professionals for auditing

Auditors will conduct a full and detailed look at your company’s financial records and statements. This includes a Balance Sheet, Cash Flow Statement and Income Statement. The main task is to evaluate the accuracy of the information as reported through the documents. Partnering with the best audit firm does not only involve accountability and good business practices, but there are also benefits to hiring professional services and get the job done.

1. Expertise to assure you

Outsourcing your audit process is a popular option for many local businesses today. This is because businesses find it more efficient to leverage these professionals from audit firms in Singapore and ensure their company is on the right track. Especially when it comes to the strict regulatory requirements in Singapore, it’s always wise to seek help for a more systematic and objective view of your finances.

2. Receive a third-party perspective

While you’re busy with the day-to-day operations, it’s also easy to overlook some financial activities. Unfortunately, this can create significant problems in the future – and auditing can also serve as a preventative measure.

A professional auditor will provide detailed remarks whether you are demonstrating full compliance, and if there are any serious flaws you need to be aware of in your system. You will also be given helpful suggestions on how to solve these issues. Their experience and comprehensive methodologies are not restricted to auditing – if you are looking to outsource other financial services, these firms also offer accounting and bookkeeping services to handle all of your financial business requirements.

3. Generate a bigger picture

An external and unbiased perspective is useful in evaluating your business’ financial health. This evaluation will assist your day-to-day financial choices. You will have access to more information on which areas of your business are going smoothly, and which ones require your attention. With a professionally conducted financial audit, you will be highlighted on potential problems and devise an efficient plan that won’t leave the company in jeopardy.

At Ackenting Group, our auditing services will assess your company’s financial performance from a holistic viewpoint. This entails checking operational structures against the standard requirements and presenting opportunities to boost financial health. As an experienced audit partner, our team is committed to managing your risks for better performance.

4. Improve credibility and reliability

Conducting regular audits also boosts your credit rating, which is great for strengthening your relationship with shareholders and investors. If you are planning to expand your business, conducting regular audit report inspires trust and assurance. People want to see the success of your company and that your business plans are going as planned. Besides positioning your business to be credible, stable financial health will prove your reliability in future business partnerships.

Conclusion

Conducting regular audits and examining audit reports can be a daunting process, yet essential for the growth of your company. With the help of audit professionals who are backed by comprehensive knowledge, keeping your company’s financial health becomes much more manageable – and thorough audits will give you greater peace of mind.

If you require any assistance on accounting services, feel free to drop us an email at johnwoo@ag-singapore.com or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.

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